In the press

Divided Europeans caught in vise of austerity

Simon Tilford, the chief economist at the CER, said countries were being forced to impose fiscal austerity at precisely the wrong point in the economic cycle. "If they attempt to meet fiscal targets, investors punish them because they worry about growth; and if they ease austerity, markets get concerned about the long term sustainability of their finances. ... They're damned if they do and damned if they don't."

“Flirting with Russia is guaranteed to antagonize the rest of the eurozone,” Mr. Tilford of the CER said. “It will make it harder for those in Germany who were arguing for a more conciliatory line toward Greece to keep it.”

“The likeliest outcome is that they will not agree to roll over the sanctions now and they will put off a decision until the last possible moment before the sanctions expire,” said Ian Bond of the CER.